Become a Landlord in One of the North Side’s Hottest Neighborhoods: 1335 W. Newport in Southport
This 2-flat at 1335 W. Newport, just steps from Southport and the Brown Line El stop in Lakeview, has been on and off the market since August 2009.
Yes, that is the El line running directly behind the property.
Built in 1908 on a 30×120 lot, this 2-flat brownstone has the following units:
- Unit #1: 2 bedrooms, 1 bath, dining room, rented for $1800 a month (including 1-garage parking space)
- Unit #2: 2 bedrooms, 1 bath, dining room, rented for $1850 a month (including 1-garage parking space)
Each unit has its own gas, heat and central air.
The kitchens have been upgraded with Unit #2 sporting white cabinets and stainless steel appliances. The listing also says the bathrooms have been updated.
The 2-flat has maintined some of its vintage features such as the hardwood floors throughout and the original woodwork.
At what price do these multi-units make investment sense?
Joaquin Calle at @Properties has the listing. See the pictures here.
1335 W. Newport: 4 bedrooms, 2 baths, 2 car garage, multi-unit
- Sold in June 1987 for $100,378
- Sold in July 1993 for $285,000
- Sold in May 2001 for $599,000
- Sold in March 2004 for $617,500
- Originally listed in August 2009 for $749,000
- Reduced several times
- Listed in October 2010 for $650,000
- Currently still listed for $650,000
- Taxes of $10,535
- Rental income: $47,400
- Individual gas/heat/Central Air
“become a landlord” = “become a sanitation worker”
Those apartments are nice enough (they’re big, charming, and there’s a garage), but for nearly $2,000/mo, I’d be shopping around for a rental with at least a powder room (to say nothing of a more desirable location). That said, at $650k, might this place be converted into a SFH? What might that cost, $150k? If this place closes at close to $600k, a nice SFH home here for $750k all-in could be pretty sweet (though I’m clueless as to its elem attendance area).
This is a FANTASTIC block… love the homes here
“At what price do these multi-units make investment sense?”
In the teeth of the great housing bubble, this place went up 1%/year.
I’d buy (assuming those are true rents, with no concessions, and everything maintenance/mechanical is up to date) it for $400k. Someone more aggressive and/or owning other props in the area might justify $500k. $650k is … optimistic.
They do look to be very nice units, tho, for what they are.
“That said, at $650k, might this place be converted into a SFH? What might that cost, $150k? ”
AHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!! HA! You’re a funny guy!
Or, can you give me the name of your contractor?
Of course, one could live in it as a SFH by taking the two interior front doors off their hinges, and (probably) hauling the appliances out of the 2d floor kitchen, but I don’t think that’s what anyone wants in a SFH.
“but for nearly $2,000/mo, I’d be shopping around for a rental with at least a powder room”
i do agree for even with parking i think a discount for the EL thing would have a lower rent.
no as a landlord, i would think a place this updated it would be easier/cheaper to maintain. any landlord care to chime in?
Why would you want a SFH right on the el tracks?
The pricing of this place makes no sense to me.
“The pricing of this place makes no sense to me.”
It looks like the current owner spent some $$ updating the place (maybe not much) and is already set to take a capital loss on the place. The pricing seems to be about limiting loss, not about getting it sold.
Those rents seem expensive for a 2/1 I wonder if those rents exaggerated
“Those rents seem expensive for a 2/1 I wonder if those rents exaggerated”
cac is a plus, but they do seem high, esp with all utilities being tenant paid. Wonder if there is laundry in the basement and if it’s coin-op or not.
“If this place closes at close to $600k, a nice SFH home here for $750k all-in could be pretty sweet (though I’m clueless as to its elem attendance area).”
I think your observation hints that there might be a pricing disparity between multi’s and SFH’s. But not sure you understand whats going to happen to that price disparity going forward.
This is an awesome block with a mix of SFH and multi units. Those rents seem a bit high, but it’s a coveted area. No way would I do a SFH home on the El, but that’s just me. I find this a very attractive buy at about 575k
“No way would I do a SFH home on the El, but that’s just me. ”
No I don’t think its “just you”, Trudi. I think thats the vast majority of the population and hence, why this thing will likely not fetch 650k or even 575k.
“I think your observation hints that there might be a pricing disparity between multi’s and SFH’s.”
You have *any* evidence that this hasn’t always been the case? There is a reason that “rental-grade” exists as a term.
Also, $650k is pretty close to what this would have sold for, at peak, as a conversion project. And then the convertor would have been lucky to break even when no one wanted to pay $1.3mm to back up to the el.
Like the folks who did 1300 Roscoe–previously featured here at http://cribchatter.com/?p=7553 –still available for $759 (short) with a $1mm mortgage, after paying $610k for the 2-flat in 2004.
Unless Wrigley Field goes away, this place will always have abundant renters who will shell out almost any price to live there. Granted your two bedrooms might be shared by 4 roommates each, but still.
I’d love to convert a building like this into a SFH but the area doesn’t appeal to me anymore and the price is too rich for my blood.
“You have *any* evidence that this hasn’t always been the case? There is a reason that “rental-grade” exists as a term. ”
Yeah but I suspect it didn’t used to be the case that:
1) purchase multi-unit such as this for X$.
2) Sink .1-.2X into converting/rehabbing it.
3) Add pixie dust.
4) List for 1.5-2X and sell near ask.
That pixie dust, BTW, was EZ/no down/low down financing.
wow, why does it cost so much to convert a two flat to single fam?
Trudi ,
Please share why this is attractive at 575k?
“wow, why does it cost so much to convert a two flat to single fam?”
In my example converting a two-flat “rental grade” to a two-flat new construction SFH lookalike.
“wow, why does it cost so much to convert a two flat to single fam?”
Depends on what you want to do. Do you want:
-master bath?
-full bath next to your kitchen?
-rental-grade kitchen?
-unfinished basement?
-2 main floor bedrooms?
-Kitchen upstairs?
-Living room and dining room upstairs?
-etc., etc., etc.
As I noted, take the interior front doors down, you have a single family home. An odd one, but a SFH. I’ll even come over and do that for you, if you’re a condo dweller who owns no tools.
“Yeah but I suspect it didn’t used to be the case that:
1) purchase multi-unit such as this for X$.
2) Sink .1-.2X into converting/rehabbing it.
3) Add pixie dust.
4) List for 1.5-2X and sell near ask.”
Yeah, that wasn’t true, except in the bubble.
But–if the 2 flat sold for it’s true rental value (in this case, about $400k, likely somewhat less), $400k + $80k, sells for under $700k is merely expensive rather than nutty.
Hah this property is actually on my watch list if it drops; I’d like to convert to SFH as it’s in Hamilton attendance.
“No way would I do a SFH home on the El, but that’s just me. ”
Nor would I. But others have.
Also:
See http://www.redfin.com/IL/Chicago/1225-W-Newport-Ave-60657/home/13381559
a short under contract with a last list of $549k. With a basement unit and 2 3-br units upstairs. Undoubtedly not in as nice of condition as this one, but also a greystone, sold for $685 and $795 (both in 2006), I’d prefer it for a SFH conversion, both as I think the grey is more desirable, and having a bathroom plumbed in the basement reduces one aspect of the work (if you’re selling–the work I’d want to do were I to live there would–most likely–not be made easier by an existing basement bath).
“Hah this property is actually on my watch list if it drops; I’d like to convert to SFH as it’s in Hamilton attendance.”
What’s your allocation for the conversion work? Got a contractor, or will Wicker GIY it?
Anon: I have two GC friends to bid each other against; each offer to walk through with me before bidding on a place. I am planning an initial spend of $100-150k for updates (demo of 2cnd kitchen, create master suite on 2cnd floor), window/roof/insulation upgrade taking up remainder of budget. If lucky, have enough to update kitchen to a point before move in.
Year 2-3 based on personal cash flows, tackle basement (in-law suite, office on 1st floor) etc. I’d like the big bang but probably can’t swing it.
“I’ll even come over and do that for you, if you’re a condo dweller who owns no tools.”
your comedic talent is not noticed bro. keep them coming, groovy needs more laughs today.
The rents are legit on this place; it’s owned by a good friend and I helped him rent out one. The top unit is nice, large living room with fireplace and the kitchen has cool concrete countertops that he custom made and installed. He did do a fair amount of work though I don’t know the $$ value. The train is behind this place but it’s nearly pulled into the Southport station so it’s not loud. Nice porches off back, I’ve sat out there and you really aren’t bothered by the train.
Wicker, put an offer in, you never know what could happen.
“both as I think the grey is more desirable,”
one reason i also wished bronzville/gap that stretch up to kenwood would bet all gentrifical. i love the greystones in that area sad to see them all turned into multi-fams and really bad low rent ones at that.
Did you see that greystone chi mag Deal Estate video’d?
“your comedic talent is not noticed bro”
oops freud slip i was going for UN-noticed
“The train is behind this place but it’s nearly pulled into the Southport station so it’s not loud.”
You mean El trains screeching to a halt utilizing their brakes create less noise then El trains moving along???
I lived by the Armitage stop for a year; I’d say from that experience trains going by (red) were louder than the browns stopping. The difference is the “*bing-bong* doors closing” continually.
Paulina..Paulina is next.
Belmont…Belmont is next, transfer to red line or purple line trains at Belmont. *bing-bong* doors closing.
Ouch.
“Anon: I have two GC friends to bid each other against; each offer to walk through with me before bidding on a place. I am planning an initial spend of $100-150k for updates (demo of 2cnd kitchen, create master suite on 2cnd floor), window/roof/insulation upgrade taking up remainder of budget. If lucky, have enough to update kitchen to a point before move in.”
That sounds about right, tho how well you redo the plumbing, and with what phasing, can have an unexpected effect. Also the condition/age of the hidden electric.
I took annony to be asking how much to get a conversion done-ish, yet done pretty basically. And you can certainly get it done for under $150, it’s just then you have all the other stuff that wasn’t done (like the full plumbing upgrade, and the basement, and moving *that* wall, and, and, and). My view is done *right* (ie, something you would have considered buying as a turnkey prop for the 2-flat price + the reno + 10%), but not top-of-the-line, it’s $75-100k per floor, if you do little to nothing yourself and don’t have too many surprise problems (ie you choose well *and* are lucky). You can easily spend $50k on plumbing, before buying a single fixture.
“no tools.”
my dad is a tv repairman
“I can fix it, dude – I’ve got a really awesome set of tools.”
“You mean El trains screeching to a halt utilizing their brakes create less noise then El trains moving along???”
Yes. I live on the same block on the same side of the street. I’m assuming the train has gone by a few times since I started reading this thread, but I haven’t noticed. I’m the lightest sleeper in the world, and I’m completely used to it.
That said, I think those rents are a little wack for only having one bathroom. Maybe it’s just Winter-Market Mike talking, but I would think you’d have to shave at least $100 off those numbers.
Yeah, those rents seem $100-150 too high for that specific area, even with the condition in the pictures. Also, being right next to the El stop is a big downer, especially if thinking about converting it to a single family home.
@Wicker – why would this be more attractive as Hamilton then as Blaine (couple blocks north) or Burley (couple blocks south)?